Minnesota's fuel retailers want to sell biofuels. But our businesses cannot survive a costly and unfair mandate.
Pressure is increasing for lawmakers to pass an E15 mandate that would require the sale of E15 and replace E10 as the dominant fuel choice. An E15 mandate will force fueling stations to spend hundreds of millions of dollars on essential infrastructure replacement with money they do not have and within a timetable that is unachievable. To sell higher ethanol blended fuels, retailers are required by law to have compatible Underground Storage Tank systems (USTs) and currently, 85% of facilities that sell E10 would not be compatible. We need time and funding to prepare for this transition.
Our industry supports the goal of selling more biofuels. However, the only realistic way to achieve this goal is a plan that includes funding for long-term infrastructure costs.
We are supportive of current infrastructure proposals to help retailers provide for a greater availability of biofuels. But if a mandate proceeds, many retailers will go out of business before they have time to make these updates.
E15 by the numbers:
85% of fueling stations are not currently compatible with E15
$784 million cost to upgrade all facilities statewide
$590,000 cost per site to upgrade multiple USTs
10 years estimated to complete all upgrades
Source: A report provided by the Minnesota Pollution Control Agency for the Governor’s Biofuels Council